Tribunal waives pre-deposit on cenvat credit for oxygen plant construction

The Tribunal granted the appellant's request for a waiver of pre-deposit of cenvat credit, interest, and penalty amounting to Rs.2,70,87,651/- on items used for constructing an oxygen generating plant within the factory premises. The Tribunal found that the capital goods were eligible for credit and used for the plant's construction, similar to a previous case involving the same entity. As there was no dispute over the goods' utilization and the facts were identical, the Tribunal concluded in favor of the appellant, staying the recovery pending appeal disposal.

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Issues:
Waiver of pre-deposit of cenvat credit, interest, and penalty on ineligible items used for construction of oxygen generating plant.

Analysis:
The judgment addresses two stay petitions seeking the waiver of pre-deposit of cenvat credit, interest, and penalty amounting to Rs.2,70,87,651/- on items used for the construction of an oxygen generating plant. The denial of cenvat credit was based on the grounds that the plant could be considered immovable property and was leased by another entity. However, it was established that the capital goods in question were eligible for credit and were used in constructing the plant within the appellant's factory premises. The Tribunal noted a similar case involving the erection of an oxygen generating plant supplied by the same entity, where a prima facie case was established, leading to a waiver of pre-deposit. Given the identical nature of the facts and the absence of dispute regarding the utilization of the capital goods, the Tribunal concluded that the appellant had made a strong case for the waiver of pre-deposit, allowing the applications and staying the recovery until the appeal's disposal.

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